Former GE CEO Jack Welch "I now believe we are in for one hell of a deep downturn,"

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Former General Electric Co Chairman and CEO Jack Welch "I now believe we are in for one hell of a deep downturn,"

Jack Welch says U.S. faces "deep downturn"

NEW YORK (Reuters) - Former General Electric Co (GE.N) Chairman and Chief Executive Officer Jack Welch said the U.S. economy faces a deep downturn in coming quarters, and he supports a proposed $700 billion government rescue package for the financial sector.

"I now believe we are in for one hell of a deep downturn," Welch told the World Business Forum in New York on Wednesday, adding that the first quarter of 2009 will likely be "brutal."

Until recently, Welch said, he had believed the U.S. economy could avoid recession, but he has changed his mind.

"I am now caving," he said. "Get ready for real tough times. They're coming. There is no credit available."

Welch said mortgage lenders, legislators, investment bankers and others are all to blame for the crisis, which stemmed from easy credit and investors' appetite for yield.

He likened the crisis to Agatha Christie's "Murder on the Orient Express," in which all the suspects turn out to be guilty; but he singled out the role of investment banks in the crisis.

"We have to look at the damn investment bankers," he said. "They're playing with other people's money. The only penalty was a cut in their bonus, not their head."

Welch praised the actions taken so far by Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke and New York Fed President Timothy Geithner, calling them "brilliant public servants" who have "not let ideology get in the way of taking action."

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This isn't some shmuck doomsdaying, this is real and we're going to start feeling it.

Well, YOU aren't going to start feeling it. I don't think your job puts you into the category of people that are going to have to pay for this.

But I am going to start feeling it, that is true. But I knew this was coming. All the people with their jaws on the ground, wringing their hands wondering where this came from are idiots. I saw this coming since the first time I saw a family of four earning $50k per year buy a $500k house.

We should go back to the good old days where the only home loan you get with no money down was a GI loan; 10% down on others. Of 3 homes I purchased, I never thought once about a second mortgage. That stupid shit should cease also along with ARM's.

I don't doubt that the 4th quarter is going to be a bummer. This buyout will send the market up; afterwards I think I will do a lot of selling.

After listening to Jack Welch and Newt tonight, the 700 billion dollar bailout is actually a buy out. The government will buy these foreclosed mortgages and own these homes. So it's not like we are handing over all that money to Freddie and Fannie. Newt said the government is paying more than market value for these homes. The government may sell them for more or less than what they pay for them. More like less cause the government could not make a profit on a shit-house if all the toilets crashed. I think the taxpayer is getting a piss poor deal if the government pays more than the appraised value of the homes as they stand rather the inflated prices that Freddie and Fannie has on the books. These foreclosed homes equal about 5% of the total market. If the Congress critters decide that a melt down in inevitable unless there is a buyout, then these mortgages should only be purchased at their present value not book value.

Well, YOU aren't going to start feeling it. I don't think your job puts you into the category of people that are going to have to pay for this.

But I am going to start feeling it, that is true. But I knew this was coming. All the people with their jaws on the ground, wringing their hands wondering where this came from are idiots. I saw this coming since the first time I saw a family of four earning $50k per year buy a $500k house.

Hi, I'm a 2<blank> (you already know enough about me on this site and LibraryLady has all but hired a PI) college student who gets really good grades and plans on having a career. I'm willing to pay taxes for a cause I believe in, no matter how high they may be; but this just reeks for my future. I'm going to footing this $750 billion bill along with everyone else my age.

You know, you guys trash a lot of young people around here but between your silly war and this clusterfuck of bailouts who's going to be paying for it? Spoiler Alert: You'll all be dead and I'll be in my mid-40's still paying off the Chinese banks for all this bullshit.

I'm willing to pay taxes for a cause I believe in, no matter how high they may be....

LOL. That's just too funny. Taxes aren't for the purpose of contributing to "causes" you believe in. What are we talking about here, saving the rainforest? Ending hunger in the third world? If you have a cause you believe in, why do you think the government is best the administrator of that cause? And why should the rest of the tax paying public be forced to also contribute to your cause as well?

Hi, I'm a 2<blank> (you already know enough about me on this site and LibraryLady has all but hired a PI) college student who gets really good grades and plans on having a career. I'm willing to pay taxes for a cause I believe in, no matter how high they may be; but this just reeks for my future. I'm going to footing this $750 billion bill along with everyone else my age.

You know, you guys trash a lot of young people around here but between your silly war and this clusterfuck of bailouts who's going to be paying for it? Spoiler Alert: You'll all be dead and I'll be in my mid-40's still paying off the Chinese banks for all this bullshit.

If you want to help people, support a charity.

The government and taxation dont exist to give handouts to every lazy fool and moron on the planet.